REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
June 27, 2023
FROM
BRENDON BIGGS, Director, Department of Public Works - Solid Waste Management
SUBJECT
Title
Amendment to Solid Waste Handling Franchise Agreement with CR&R Incorporated for County Franchise Area 20
End
RECOMMENDATION(S)
Recommendation
1. Approve Amendment No. 1 to Franchise Agreement No. 22-1208 with CR&R Incorporated, updating Exhibit A: Provided Services, updating description language, Exhibit A-1: Services to be Provided, updating the collection frequency, and Exhibit E: Rates, updating reduction of various rates, and the term, for County Franchise Area 20.
2. Authorize the Chief Executive Officer or the Director of the Department of Public Works to approve and execute any non-substantive revisions to the Franchise Agreement, subject to review and approval by County Counsel.
(Presenter: Brendon Biggs, Director, 387-7906)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost) as the Department of Public Works - Solid Waste Management Division (SWMD) is financed by fee revenue. SWMD establishes the Refuse Franchise Fee, which is included in the County Fee Ordinance and is utilized to manage the franchise agreements to meet the mandate of providing solid waste handling services in the unincorporated areas of the County. Sufficient appropriation and revenue are included in SWMD’s 2022-23 budget and will be included in future recommended budgets.
BACKGROUND INFORMATION
The proposed Amendment No. 1 to Franchise Agreement No. 22-1208 with CR&R Incorporated (CR&R) will approve a revised rate sheet in Zone 20A (Baldy Mesa and Oak Hills) that reduces the residential bundled cart rate, provides weekly collection of residential recycling carts instead of bi-weekly; adds the inclusion of recycling and organic carts with residential and commercial refuse bin service at no extra cost; and reduces the extra recycling and organics cart rate for refuse bin customers. It also approves a revised rate sheet in Zone 20C (Cajon Junction and sphere of Phelan) that removes residential and commercial container removal and reinstatement fees for delinquent accounts and corrects rates for roll-off container services in order to include landfill disposal facility fees in the total rates, which were incorrectly totaled. Additionally, the recommended amendment also revises the contract term from an evergreen agreement, with automatic renewal on July 1, to a revised 10-year fixed term, with an option to extend for two additional years.
The County’s Solid Waste Handling Franchise Agreements (Agreements) were initially adopted by the Board of Supervisors (Board) on May 19, 1998 (Item No. 57) to provide affordable solid waste handling services that protects the health and safety of the community and establishes waste reduction and recycling programs in compliance with the Integrated Waste Management Act of 1989 (AB 939).
Pursuant to Proposition 218 requirements, property owners were mailed a notice indicating the County’s intent to consider a renewal of the cost of living adjustment methodology and new rates for solid waste collection and disposal services charged by the County’s solid waste collection franchisees in order to comply with SB 1383, proposed changes in rates for the services provided through the Agreements, and also the proposed rate adjustment methodologies used to calculate the annual Cost of Living Adjustment (COLA) that will be used beginning July 1, 2023. The Proposition 218 notices were mailed on or before October 28, 2022. Each owner/tenant had at least 45 days to submit a written protest to the proposed rates and COLA calculation methodology. A subsequent Proposition 218 hearing was held before the Board on December 13, 2022.
The majority of the current Agreements (including Agreement No. 22-1208) were substantially revised and restated and subsequently approved by the Board on December 13, 2022 (Item No. 91) to include new services and rates to ensure County compliance with the California Short-Lived Climate Pollutant Act of 2016 (Senate Bill (SB) 1383).
The proposed updates to the rates through this Amendment No. 1 to Agreement No. 22-1208 do not increase the rates or decrease the services provided that were outlined in the Proposition 218 notices mailed out on October 28, 2022, and therefore do not require a subsequent Proposition 218 hearing.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Jolena Grider, Deputy County Counsel, 387-5455) on June 6, 2023; Finance (Carl Lofton, Administrative Analyst, 387-5404) on June 15, 2023; and County Finance and Administration (Paloma Hernandez-Barker, Deputy Executive Officer, 387-5423) on June 16, 2023.